(c) Discuss other factors that might have a bearing on the decision.

Rob Otics Ltd, a small business that specialises in building electronic-control equipment, has just received an order from a customer for eight identical robotic units. These will be completed using Rob Otic’s own labour force and factory capacity. The product specification prepared by the estimating department shows the following:

● Material and labour requirements for each robotic unit:

Component X 2 per unit Component Y 1 per unit Component Z 4 per unit

● Other miscellaneous items:

Assembly labour 25 hours per unit (but see below)

Inspection labour 6 hours per unit